ACCA Strategic Professional · Advanced Financial Management · Corporate environmental, social, governance (ESG) and ethical issues
Which statement best describes the triple bottom line approach to sustainability reporting?
The triple bottom line means measuring and reporting an organisation's performance on three dimensions: economic profit, social impact on people and environmental impact on the planet, rather than financial results alone.
- AReporting profit, people and planet performance togetherCorrect
- BReporting three years of audited profit figures
- CSplitting profit into operating, investing and financing elements
- DUsing three separate discount rates in project appraisal
Explanation
The triple bottom line extends performance measurement beyond financial profit to include social (people) and environmental (planet) outcomes. The other options relate to unrelated financial reporting or appraisal ideas.
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